From homes to hospitals, Samsung widens its appliance subscription

Samsung Electronics is revamping its home appliance subscription and maintenance service to include enterprises as annual sales from the service near 1 trillion won ($736 million).

Samsung is targeting small business owners, including restaurants and hotels, as well as those in health care and finance, with an all-in-one care package offered as a subscription to cut their costs.

"When people open restaurants or small offices to start their own businesses, buying all the equipment up front creates a heavy cost burden," said Lim Sung-taek, vice president of Samsung Electronics' Korea division, at a press event at Samsung's Cheongdam store in southern Seoul marking the second anniversary of the subscription launch.

"A subscription turns that spending into an operating expense. AI features in the products cut electricity and other running costs, and the savings can go toward the subscription fee."

Corporate customers also receive free after-sales service for up to six years. Lim said institutions such as banks and hospitals need more detailed care, particularly hospitals, where hygiene is critical.

For individual consumers, Samsung is adding the Newlywed Pass and the Easy Care Pass, aimed at newlyweds and older adults, to its Blue Pass service.

The Newlywed Pass targets newlyweds and single-person households that buy several appliances at once or move often. It offers a post-move inspection, restoration of cabinetry after a dishwasher or robot vacuum is installed or removed and cleaning at a time the customer chooses.

The Easy Care Pass helps older customers use AI appliances more easily through regular calls from counselors.

Samsung cited the rapid spread of subscriptions in Korea as the reason for the finer segmentation. According to the company, 94.8 percent of Korean consumers are using subscription services this year. They subscribe to 5.5 services on average and spend 41,853 won a month.

BY LEE JAE-LIM [[email protected]]